Experian-Gallup Survey Shows 3 in 10 Consumers Say It's Hard to Make Ends Meet

According to the latest Experian-Gallup Personal Credit Index(SM) survey, 65 percent of consumers say they save some money regularly, while 31 percent report that it’s hard enough just to make ends meet. The survey also revealed interesting statistics about consumer financial concerns, credit card usage, quality of life and spending habits. In addition, the Personal Credit Index(SM) is down 15 points to 90, which is the lowest level since November 2006. More information for the Personal Credit Index can be found at http://www.personalcreditindex.com/.

Financial Concerns

"Although many more Americans say they are saving regularly than is the conventional wisdom, consumers’ greatest worry is not having enough money for retirement, with 42 percent of all consumers voicing this concern," said Ty Taylor, president of Experian Consumer Direct.

According to the survey, in general, women are less likely than men to say they pay off the full amount each month (34 percent versus 41 percent). Also, those who do not save regularly are significantly less likely than their male counterparts to report they pay the full amount on their credit cards each month (18 percent versus 47 percent).

According to the survey, three in four consumers (76 percent) feel they have enough money to live comfortably right now. Among those having incomes of $75,000 or more, 91 percent believe they have enough money right now to live comfortably, while only 61 percent of those having incomes less than $40,000 annually feel they have enough money to live comfortably. Similarly, 88 percent of those who have graduated college feel they have enough money to live comfortably, compared with 69 percent of those with a high school education or less.

Spending Habits

A majority (54 percent) of consumers feel this is a bad time to spend money, as opposed to 42 percent who feel they are in a good position to buy some things they would like to have. However, how consumers feel about spending money is highly related to income.

Consumer perceptions of the credit markets fell sharply in March, according to the Personal Credit Index as it plunged 15 points from 105 in January and 105 in February to 90 in March. This is the lowest level for the Personal Credit Index since November of last year, when it stood at 83.

"One of the key benefits of the Personal Credit Index is the window it provides on how consumers perceive the credit markets," said Dennis Jacobe, chief economist for The Gallup Organization. "If regulators and the banks they regulate are beginning to pull back on the very easy availability of consumer credit that has existed during recent years, then something of an unusual consumer credit crunch could take place. In fact, the sharp drop in the Personal Credit Index for March may be signaling that the start of such a consumer credit crunch is already under way."